Paycheck Protection Program Update from the SBA
March 1, 2021
From the United States Small Business Administration:
Building on a month of strong Paycheck Protection Program results, the Biden-Harris Administration and the U.S. Small Business Administration are taking steps that will further promote equitable relief for America’s mom-and-pop businesses. These simple progressive steps by the Biden-Harris Administration further demonstrate the commitment to racial and gender equity, reaching low and moderate-income, rural, urban, and other underserved areas. The SBA has established a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employee that ends on March 9, 2021 at 5:00 pm ET. Additionally, the Agency will:
Allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants
Eliminate an exclusionary restriction on PPP access for small business owners with prior non-financial fraud felony convictions, consistent with a bipartisan congressional proposal
Eliminate PPP access restrictions on small business owners who have struggled to make federal student loan payments by eliminating federal student loan debt delinquency and default as disqualifiers to participating in the PPP; and
Ensure access for non-citizen small business owners who are lawfully residing in the U.S. by clarifying that they may use an Individual Taxpayer Identification Number (ITIN) to apply for the PPP.
These actions will help to lay the foundation for a robust and equitable recovery for small businesses across the country. Small businesses employ nearly half of the American workforce; they create 2 out of 3 net new private-sector jobs; they reinvest 68% of revenues to build and sustain communities.
Borrowers can apply for the Paycheck Protection Program by downloading the First Draw PPP loan application or Second Draw PPP loan application and working with a participating PPP lender through the SBA Lender Match tool.